Question
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Time Charges Material Loading Charges
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance.
| Time Charges | Material Loading Charges | |||||||
|---|---|---|---|---|---|---|---|---|
| Technicians' wages and benefits | $192,400 | - | ||||||
| Parts manager's salary and benefits | - | $39,600 | ||||||
| Office employee's salary and benefits | 51,800 | 9,400 | ||||||
| Other overhead | 14,800 | 19,600 | ||||||
| Total budgeted costs | $259,000 | $68,600 | ||||||
The company desires a $39 profit margin per hour of labor and a 27.00% profit margin on parts. It has budgeted for 7,400 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $392,000.
What is the labor rate per hour ___
Material Loading percentage ___
Total estimated Bill ____
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Petroleum Accounting Principles Procedures And Issues
Authors: Dennis Jennings, Joe Feiten, Horace Brock
5th Edition
0940966255, 978-0940966253
